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Boeing 737 Max grounding: Fares soar over 100% as airlines cancel flights

Spot fares for Mumbai-Chennai are touching Rs 26,073, as opposed to Rs 5,369 the same time last year

IANS  |  New Delhi/Mumbai 

Airfares. Photo: iStock

face the grim prospect of high airfares and fewer flight choices as several airlines have cancelled operations for a number of reasons, including the grounding of 737 MAX aircraft.

Industry insiders on Thursday pointed out that some sectors have shown a rise of more than 100 per cent in last minute bookings.

"With an unprecedented number of planes now grounded due to various factors, reduction in seat capacity has led to an increase in fares overnight. Last minute airfares on Wednesday increased to more than 100 per cent on some key routes like Delhi-Mumbai, Mumbai-Chennai, Mumbai-and Mumbai-Bengaluru as compared to same time last year," said Co-founder and CEO

"Spot fares for Mumbai-Chennai are touching Rs 26,073, as opposed to Rs 5,369 the same time last year. High airfare patterns are expected to continue in the short-term with Holi and summer school holidays around the corner, resulting in increased demand."

According to Sharat Dhall, (B2C), civil regulator DGCA's decision to ground 737-MAX aircraft has resulted in a fairly significant impact on airfares for on certain key routes.

"While overall fares were already on the rise by 15-20 per cent, we have noticed a variable pattern in spot fares with a spike in fares on routes such as Mumbai-Hyderabad, Mumbai-and Delhi-

"With the current increase in load factors, this reduction in capacity, we expect the airfares to rise further in the short to medium term," Dhall said.

Operations of airlines like and have been hit due to the government's decision on Wednesday to join a global grounding of 737-MAX aircraft following a crash in

In India, and operate 17 737 800 MAX aircraft -- Spice (12) and Jet (5). A part of Jet's fleet has already been grounded due to other reasons.

The grounding led to cancel 14 flights on Wednesday. This number is expected to touch 32 on Thursday.

Apart from SpiceJet, Jet Airways, which faces financial challenges, has already grounded four more aircraft over non-repayment of dues to lessors, taking the total to 32.

The company in BSE filings has said that its 19 aircraft were grounded in February over non-repayment of dues to lessors, while 13 aircraft were grounded this month, taking the total to 32. The Group operates a fleet of 123 aircraft.

However, around 50 planes are said to be non-operational due to a host of reasons, including a lack of spare parts.

is going through massive turbulence on account pilot shortage, leading to a truncated flight schedule.

The said earlier that 30 of its flights that have been affected represent only 2 per cent of its network. It has decided to curtail its schedule till March 31, by about 30 flights a day.

"As a proactive measure, has decided to continue its curtailment until the end of March. This measure has already been implemented and passengers informed," the said in a statement.

"These medium-term cancellations have been made to minimise the impact on passengers as alternative have been offered well in advance. The operations will be normalised by the start of the summer schedule."

For some time now, has grounded 17 aircraft due to technical reasons.

On Wednesday, the government had advised domestic airlines not to go in for predatory airfare pricing as several 737-MAX aircraft were grounded due to safety reasons.

Secretary said: "We have advised the airlines... that they should not use it (grounding) as a reason to jack up their fares."

"They have promised they will go as per normal routine. has just said that it will be monitoring all the sectors very closely."

First Published: Thu, March 14 2019. 18:24 IST